Giant to follow Trek with new direct sales model in USA

Giant has become the latest big brand to go down the direct sales approach, which will see it selling bikes direct to its US customers who will then pick up their new bikes from a local Giant store. A trial version of the system will be introduced from March, with a full rollout expected in August

Having successfully used the system in the UK, Giant has become the second big name to delve into direct sales in the American market, with Trek announcing last August that it would be taking a similar approach. Both of these announcements have come in the midst of growing speculation that Canyon, the German direct sales brand that has enjoyed so much success in Europe, could be looking to expan into the American market in the near future.

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However, the approaches of Giant and Trek differ slightly from that of Canyon, in that while Canyon ships direct to the customer, Giant and Trek will ship the bike to a local bike shop, where the customer will then collect their bike.

The bike shops will also take a share of the sales, taking 100 per cent margin on bikes that they themselves stock, and 80 per cent margin on bikes that they do not stock. A similar system will apply to Giant clothing and equipment, although this will be shipped direct to customers’ home addresses.